Booyoung chairman's conviction: "Even if you give birth the day after joining, you get 100 million won... It's fine if you quit after receiving it"

[The Financial News]"We of course processed the case of an employee who gave birth just one day after joining the company."Lee Joongkeun, chairman of Booyoung Group, who has been providing 100 million won in childbirth incentives for each newborn child of employees, made this remark on the 31st during an appearance on Christian Broadcasting System Radio (CBS Radio)'s program "Park Sung-tae's News Show."
Asked whether the incentive is still paid if an employee gives birth right after joining the company or has twins or triplets, Lee replied, "Once the child is born, it is given to the child," making it clear that the company does not ask for the money back even if the employee changes jobs after receiving it.
The incentive is paid not to the employee but as a direct gift into a bank account in the newborn's name. This avoids a situation where an employee with an annual salary of 50 million won who receives an additional 100 million won would face a tax rate of up to 38% and owe about 40 million won in taxes. By treating it as a gift to the child, only a 10% gift tax is applied.
Lee stated, "I understand that many other companies are adopting childbirth incentive programs as well," and added, "Even if it is not 100 million won, and even if the amounts differ, I felt we did the right thing because this kind of movement seems to be gradually spreading."
He went on to say, "When employees are properly treated and feel happy, that happiness extends to the entire company," adding, "I believe it will also greatly contribute to the future of our society and the nation."
Booyoung Group, which introduced its childbirth incentive program in 2024, has paid out 3.6 billion won in its third year, 2026. This is about a 29% increase from the previous year's 2.8 billion won, bringing the cumulative total to 13.4 billion won.
Booyoung Group plans to continue providing childbirth incentives until South Korea's total fertility rate reaches a certain level.
sms@fnnews.com Reporter Sung Min-seo Reporter